Tax Procedures Act

Section 1. Short title Section This Act may be cited as the Tax Procedures Act.

Section 2. Object and purpose of the Act Section 2(1)(a) consistency and efficiency in the administration of tax laws; Section 2(1)(b) facilitation of tax compliance by taxpayers; and Section 2(1)(c) effective and efficient collection of tax . Section 2(2) Unless a tax law specifies a procedure that is unique to the administration of a tax thereunder, the procedures provided for under this Act shall apply. Section 2(3) This Act shall be interpreted to promote the object of the Act.

Section 3. Interpretation Section 3(1) In this Act, except where when the context otherwise requires— “accounting officer” has the meaning assigned under the Public Finance Management Act ( Cap. 412A ); "advance assessment ” means an advance assessment made by the Commissioner under section 30 ; "amended assessment ” means an amended assessment made by the Commissioner under section 31 ; "appealable decision” means an objection decision and any other decision made under a tax law other than— (a) a tax decision ; or (b) a decision made in the course of making a tax decision ; “assessment” means a self-assessment , default assessment, advance assessment, or amended assessment, and includes any other assessment made under a tax law ; “authorised officer” , in relation to a tax law , means the Commissioner or an officer appointed by the Commissioner under the Kenya Revenue Authority Act ( Cap. 469 ); "Authority” means the Kenya Revenue Authority established under the Kenya Revenue Authority Act ( Cap. 469 ); “Cabinet Secretary” means the Cabinet Secretary for the time being responsible for matters relating to finance; “certificate of origin” means an official document issued by a compe...

Section 4. Functions and powers of theCommissioner Section 4(1)(a) the control and collection of taxes; Section 4(1)(b) accounting for collected taxes; and Section 4(1)(c) subject to the direction and control of the Cabinet Secretary , for the general administration of tax laws. Section 4(2) The Commissioner shall appoint such authorised officers as may be necessary for the administration of a tax law . Section 4(3) An authorised officer shall enforce, and ensure due compliance with, the provisions of the tax law , and shall make all due inquiries in relation thereto. Section 4(4) An authorised officer shall produce on demand such documents approved by the Commissioner establishing the officer’s identity.

Section 5. Delegation Section 5(1) The Commissioner may, in relation to a tax law , delegate in writing to an authorised officer the performance of any of the powers or functions of the Commissioner under that tax law , other than the power of the Commissioner under section 4 . Section 5(2) The Commissioner may revoke, in writing, a delegated power or function at any time and nothing in this section prevents the Commissioner from exercising a delegated power or performing a delegated function. Section 5(3) A decision made, and a notice or communication issued or signed, by an authorised officer may be withdrawn or amended by the Commissioner or by that authorised officer , and shall, for the purposes of the tax law to which it relates and until it has been withdrawn, be deemed to have been made, issued or signed by the Commissioner .

Section 6. Confidentiality Section 6(1) The Commissioner or an authorised person shall, in relation to the administration of a tax law , protect the confidentiality of the documents or information obtained in the course of administering the tax law . Section 6(2)(a) another authorised officer for the purposes of carrying out any duty arising under a tax law ; Section 6(2)(b) an authorised customs officer for the purposes of carrying out any duty under a law related to customs; Section 6(2)(c) the Tribunal or a court to the extent necessary for the purposes of any proceedings under a tax law ; Section 6(2)(d) the Director-General of the Kenya National Bureau of Statistics for the performance of the Director-General’s official duties; Section 6(2)(e) the Auditor-General for the performance of the Auditor-General’s official duties; Section 6(2)(f) a competent authority of the government of a foreign country or an international organization with which Kenya has entered into an agreement which provides for the exchange of information to the extent permitted under that agreement; or Section 6(2)(g) the Authority responsible for investigation of corruption and matters related to the integ...

Section 7. Authorised officers to have powers of police officers Section 7(1) For the purposes of administering a tax law , an authorised officer shall, in the performance of that officer’s duties, have all the powers, rights, privileges and protection of a police officer. Section 7(2) Without prejudice to the generality of subsection (1) , the authorised officer shall have the power to enter and search any premises or vessels and seize, collect and detain evidence and produce such evidence in any proceedings before a court of law or tax appeals tribunal. ( Act No. 15 of 2017 , s. 21.)

Section 6A. Internationaltaxagreements Section 6A(1) Any multilateral agreements and treaties that have been entered into by or on behalf of the Government of Kenya relating to international tax compliance and prevention of evasion of tax or exchange of information on tax matters shall have effect in the manner stipulated in such agreements or treaties. Section 6A(2) Notwithstanding any other provision of this Act or any other written law, the information obtained pursuant to agreements specified under subsection (1) shall not be disclosed except in accordance with the conditions specified in the agreements. Section 6A(3) Any multilateral agreement or treaty that has been entered into by or on behalf of the Government of Kenya relating to mutual administrative assistance in the collection of taxes shall have effect in the manner stipulated in such agreement or treaty. ( Act No. 8 of 2021 , s. 35, Act No. 4 of 2023 , s. 50.)

Section 6B. Common reporting standard obligations Section 6B(1)(a) any financial institution that is resident in Kenya but does not mean any branch of that financial institution that is located outside Kenya; or Section 6B(1)(b) any branch of a financial institution that is not resident in Kenya, if that branch is located in Kenya. Section 6B(2) A reporting financial institution shall comply with the due diligence procedures and record keeping requirements as set out in the common reporting standard Regulations prescribed under subsection (6) . Section 6B(3)(a) an information return on reportable accounts held, managed or administered by that reporting financial institution; or Section 6B(3)(b) a return marked "nil" if no account held, managed or administered by that reporting financial institution is identified as a reportable account. Section 6B(4) The date by which and the manner in which an information return or a 'nil' return shall be filed with the Commissioner shall be as set out in the common reporting standard Regulations prescribed under subsection (6) . Section 6B(5) Where a financial institution, intermediary, service provider, or any other person enters into any arrang...

Section 8. Registration of taxpayers Section 8(1)(a) has accrued a tax liability or who expects to accrue a tax liability under the Income Tax Act ( Cap. 470 ) or the Value Added Tax Act ( Cap. 476 ); Section 8(1)(b) expects to manufacture or import excisable goods; or Section 8(1)(c) expects to supply excisable services; Section 8(2)(a) made in the prescribed form ; Section 8(2)(b) accompanied by documents that the Commissioner may require, including documents of identity; and Section 8(2)(c) made within thirty days of the applicant becoming liable for that tax . Section 8(3) Where a person liable for a tax under a tax law is required or has the option to register under that tax law , that person shall comply with the provisions of that tax law and this Act regarding registration. Section 8(4) The Commissioner shall register a person who has applied for registration if the Commissioner is satisfied that the person is liable for tax under a tax law . Section 8(5) When the Commissioner refuses to register a person who has applied for registration, the Commissioner shall inform that person in writing within fourteen days of the decision not to register that person . Section 8(6) The...

Section 9. Supply of information upon change in particulars Section in the place of business, trading name and registered address;

Section 10. Deregistration Section 10(1) A person who ceases to be required to be registered for the purposes of a tax law shall apply to the Commissioner for deregistration under that specific tax law . Section 10(2)(a) in the prescribed form ; and Section 10(2)(b) within thirty days of ceasing to be required to be registered under that tax law . Section 10(3) Where a tax law requires a registered person to apply for deregistration in addition to the requirement under this section, that person shall also apply for deregistration in accordance with the provision of that tax law . Section 10(4) The Commissioner shall notify in writing a registered person of the deregistration of that person if the Commissioner is satisfied that the person is no longer required to be registered for the purpose of a tax law . Section 10(5) The Commissioner may, on his or her own motion and by notice in writing to a person or a person ’s tax representative , deregister the person when satisfied that the person is eligible for deregistration, including when the person is a natural person who has died, a company that has been liquidated, or any other person that has otherwise ceased to exist. Section 10(...

Section 11. Personal identification number Section The Commissioner shall issue a number, to be known as a personal identification number (“PIN”), to a person registered for the purposes of a tax law and that person shall use the PIN as may be required under this Act.

Section 12. Issue of a PIN Section 12(1) The Commissioner shall issue a PIN to a person registered under section 8 . Section 12(2) A registered person shall use a PIN for the purposes of all tax laws and a registered person shall be issued with only one PIN at any time. Section 12(3) A person who has not been registered under section 8 but who requires a PIN for the purposes of a transaction specified in the First Schedule may apply to the Commissioner for a PIN. Section 12(4)(a) in the prescribed form ; and Section 12(4)(b) accompanied by documents that the Commissioner may require, including documents of identity or registration. Section 12(5) The Commissioner shall issue a PIN to an applicant under subsection (3) if the Commissioner is satisfied that the applicant requires a PIN for the purposes of a transaction specified in the First Schedule. Section 12(5A) The Commissioner may, upon receipt of an application made by or on behalf of any person or class of persons, exempt such person or class of persons from the requirement for a PIN for any of the transactions specified in the First Schedule. Section 12(6) A PIN is issued to a person when the Commissioner notifies that person...

Section 13. Use of a PIN Section 13(1)(a) on any return, notice or other document submitted, lodged, or used for the purposes of a tax law , or as otherwise required under a tax law ; or Section 13(1)(b) on any documentation required for a transaction specified in the First Schedule. Section 13(2) Subject to subsection (3) , one PIN shall be issued to each person and it shall not be used by a person other than the person to whom it was issued. Section 13(3)(a) the person has given written permission to the tax agent to use the PIN; and Section 13(3)(b) the tax agent uses the PIN only in respect of the tax affairs of the person .

Section 14. Cancellation of a PIN Section 14(1) A person issued with a PIN under section 12(3) but who is not registered under section 8 shall notify the Commissioner in writing when that person no longer requires a PIN for the purposes of a transaction specified in the First Schedule. Section 14(2)(a) the person has been deregistered under section 10 ; Section 14(2)(b) the person is required to notify the Commissioner under subsection (1) but has failed to do so; Section 14(2)(c) the person has notified the Commissioner under subsection (1) ; Section 14(2)(d) a PIN has been issued to the person under an identity that is not the person 's true identity; or Section 14(2)(e) the person had been previously issued with a PIN that is still in force. Section 14(3) The Commissioner may, at any time and in writing, cancel a PIN issued to a person and issue the person with a new PIN.

Section 15. Taxpayer'stax representative Section 15(1)(a) an individual under a legal disability, if that person is the guardian or other legal representative who receives or is entitled to receive income on behalf, or for the benefit, of the individual; Section 15(1)(b) a company within paragraph (a) of the definition in section 3 , if that person is the chief executive officer, managing director, company secretary, treasurer, trustee or a resident director or similar officer of the company acting or purporting to act in such a position; Section 15(1)(c) an association of persons, if that person is responsible for accounting for the receipt or payment of moneys or funds on behalf of the association; Section 15(1)(d) a partnership or limited partnership , if that person is a partner in the partnership or a manager of the partnership responsible for accounting for the receipt or payment of moneys or funds on behalf of the partnership; Section 15(1)(e) a trust (other than the estate of a deceased taxpayer ), if that person is a trustee of the trust ; Section 15(1)(f) the National Government, or a county government, the judiciary and the Parliamentary Service Commission if that person...

Section 16. Liabilities and obligations oftaxrepresentatives Section 16(1) A tax representative of a taxpayer shall be responsible for performing any duty or obligation imposed by a tax law on the taxpayer , including the submission of returns and the payment of a tax . Section 16(2) Despite the provisions of this Act, if a tax law requires a tax representative to perform a duty or an obligation in respect of the taxpayer , that tax representative shall comply with the requirements of that other tax law in addition to complying with the provisions of this Act. Section 16(3) Where a taxpayer has more than one tax representative , each tax representative shall be responsible for the tax obligation for which the tax representative has been appointed. Section 16(4) Where a tax representative pays a tax on behalf of a taxpayer with the authority of that taxpayer , that tax representative shall be indemnified by the taxpayer in respect of that payment. Section 16(5) Except as provided under a tax law and subject to subsection (6) , any tax that is payable by a tax representative of a taxpayer under this section shall be recoverable from the tax representative only to the extent of the in...

Section 17. Duties of appointedperson Section 17(1) An administrator, personal representative, executor of a will, trustee -in-bankruptcy, receiver, or liquidator (referred to as the “appointed person ”) who has been appointed to administer, manage, liquidate, or wind up the affairs of a taxpayer , including a deceased taxpayer , shall notify the Commissioner , in writing, of the appointment within fifteen days of the date of the appointment. Section 17(2) The Commissioner shall notify an appointed person in writing of the amount of tax that is payable or will become payable by the taxpayer whose assets are under the control of the appointed person within two months of the Commissioner receiving a notification under subsection (1) . Section 17(3)(a) not dispose of an asset of the taxpayer whose assets are under the control of the appointed person without prior approval of the Commissioner until the appointed person has been notified under subsection (2) or the two month period specified in subsection (2) has expired without the Commissioner notifying the appointed person of the tax payable; Section 17(3)(b) set aside the amount notified by the Commissioner under subsection (2) out...

Section 18. Liability fortaxpayable by acompany Section 18(1) Subject to subsection (2) , where an arrangement has been entered into by any director, general manager, company secretary, or other senior officer or controlling member of the company with the intention or effect of rendering a company unable to satisfy a current or future tax liability under a tax law , every person who was a director or controlling member of the company when the arrangement was entered into shall be jointly and severally liable for the tax liability of the company . Section 18(2)(a) the director, general manager, company secretary, or other senior officer or controlling member notified in writing the company of his or her opposition to the arrangement on becoming aware of the arrangement and notified in writing the Commissioner of the arrangement; or Section 18(2)(b) at the time the arrangement was entered into, that director, general manager, company secretary, or other senior officer or controlling member was not involved in the executive management of the company and had no knowledge of and could not reasonably have been expected to know of the arrangement. Section 18(2)(c) deleted byAct No. 15 of...

Section 19. Application fortax agentlicence Section 19(1) An individual or a partnership may apply to the Commissioner for a licence as a tax agent . Section 19(2) An application under subsection (1) shall be in the prescribed form and accompanied by the prescribed fee. Section 19(3) An applicant shall, in addition to the requirements set out in subsections (1) and (2) , be required to be recommended for registration by the Tax Agents Committee. ( Act No. 38 of 2016 , s. 35.)

Section 20. Licensing oftaxagents Section 20(1) The Commissioner shall issue a licence to an applicant under section 19 if the applicant is a fit and proper person to prepare tax returns, notices of objection, or otherwise transact business with the Commissioner under a tax law on behalf of a taxpayer. Section 20(2)(a) a partner in the partnership or an employee of the partnership is a fit and proper person to prepare tax returns, notices of objection and transact business with the Commissioner on behalf of a taxpayer ; and Section 20(2)(b) every partner in the partnership is of good character and integrity. Section 20(3) The Regulations under this Act may provide for guidelines for determining whether or not a person is a fit and proper person to prepare tax returns, notices of objection, or transact business with the Commissioner on behalf of taxpayers. Section 20(4) The licence issued to a tax agent shall be valid until it is cancelled under section 22 . Section 20(5) The Commissioner shall notify in writing an applicant under section 19 of the decision on the application. Section 20(6) The Commissioner may, from time to time, publish, a list of persons issued with licenses to a...

Section 21. Limitation on the performance oftaxservices for taxpayers Section 21(1)(a) represent another person as that other person 's tax agent ; or Section 21(1)(b) offer assistance to another person for a reward in respect of that other person 's rights or obligations under a tax law . Section 21(2) Subsection (1) (b) shall not apply to a legal practitioner acting in the ordinary course of the person 's profession.

Section 22. Cancellation oftax agent's licence Section 22(1) A tax agent who ceases to carry on business as a tax agent shall notify the Commissioner in writing at least seven days before ceasing to carry on business as a tax agent . Section 22(2) A tax agent may apply in writing to the Commissioner to cancel the licence. Section 22(3)(a) a tax return prepared and filed by the tax agent is false in any material particular, unless the tax agent satisfies the Commissioner that the falsification was not due to any wilful or negligent conduct of the tax agent ; Section 22(3)(b) the tax agent ceases to satisfy the conditions for licensing as a tax agent ; Section 22(3)(c) the tax agent has ceased to carry on business as a tax agent . Section 22(4) The Commissioner shall notify a tax agent in writing of the cancellation of the licence. Section 22(5)(a) the date the tax agent ceases to carry on business as a tax agent ; or Section 22(5)(b) sixty days after the tax agent has been notified by the Commissioner of the cancellation of the tax agent 's licence, whichever is the earlier.

Section 15A. Appointment oftax representativeby non-residentperson Section 15A(1) In a case where a non-resident person with no fixed place of business in Kenya is required to register under a tax law , the non-resident person shall appoint a tax representative in Kenya in writing. Section 15A(2) Where a person required to appoint a tax representative in accordance with sub section (1) fails to do so, the Commissioner may appoint a tax representative for that person , and the tax representative so appointed shall have the duties and obligations specified under section 15 . Section 15A(3) The registration of the tax representative shall be in the name of the non-resident person being represented. Section 15A(4) A person may be a tax representative for more than one non-resident person , in which case the person shall have a separate registration for each non-resident person . Section 15A(5) The Commissioner shall issue a PIN to the tax representative . ( Act No. 38 of 2016 , s. 33, Act No. 15 of 2017 , s. 23.)

Section 23. Record-keeping Section 23(1)(a) maintain any document required under a tax law , in either of the official languages; Section 23(1)(b) maintain any document required under a tax law so as to enable the person 's tax liability to be readily ascertained; and Section 23(1)(c) subject to subsection (3) , retain the document for a period of five years from the end of the reporting period to which it relates or such shorter period as may be specified in a tax law . Section 23(2) The unit of currency in books of account, records, paper registers, tax returns or tax invoices shall be in Kenya shillings. Section 23(2A) Despite subsection (2) , the unit of currency in books of account, records, paper registers, tax returns or tax invoices in respect of a non-resident person carrying on business through a digital marketplace shall be in convertible foreign currency as may be approved by the Commissioner . Section 23(2B) The provisions of subsection (2) shall not apply to a non-resident person who files returns and makes payments through a resident tax representative or non-resident person with a permanent establishment. Section 23(3)(a) relates to an amended assessment , the perso...

Section 23A. Electronictaxinvoices Section 23A(1) The Commissioner may establish an electronic system through which electronic tax invoices may be issued and records of stocks kept for the purposes of this Act. Section 23A(2)(a) issue an electronic tax invoice through the system established under subsection (1) ; and Section 23A(2)(b) maintain a record of stocks in the system established under subsection (1) . Section 23A(3) Where an electronic tax invoice required to ascertain tax liability is issued by a resident person or the permanent establishment of a non-resident person , that invoice shall be generated through the system established under subsection (1) . Section 23A(4) The electronic tax invoice referred to in subsection (3) may exclude payments of emoluments, payments for imports, payments of interest, transactions for accounting for investment allowances, airline passenger ticketing, and payments subject to withholding tax that is a final tax . Section 23A(5) The Commissioner may, by notice in the Gazette , exempt a person from the requirements of this section. ( Act No. 4 of 2023 , s. 52, Act No. 9 of 2025 , s. 49.)

Section 58. Power to inspect goods, records,etc. Section 58(1) Notwithstanding anything to the contrary in any written law, an authorised officer may inquire into the affairs of a person under any tax law , and shall at all times have full and free access to all lands, buildings, places to inspect all goods, equipment, devices and records, whether in the custody or control of a public officer, or of a body corporate or of any other person , and may make extracts from or copies of those records. Section 58(2) An officer acting under subsection (1) may require the owner or employee, or a representative of the owner of the business, to give him all assistance and to answer all questions relating to the inquiry.

Section 59. Production of records Section 59(1)(a) produce for examination, at such time and place as may be specified in the notice, any documents (including in electronic format) that are in the person 's custody or under the person 's control relating to the tax liability of any person ; Section 59(1)(b) furnish information relating to the tax liability of any person in the manner and by the time as specified in the notice; or Section 59(1)(c) attend, at the time and place specified in the notice, for the purpose of giving evidence in respect of any matter or transaction appearing to be relevant to the tax liability of any person . Section 59(2)(a) the documents shall not, while they are being examined, be removed from the premises of the financial institution or other premises at which they are produced; Section 59(2)(b) the Commissioner or authorised officer carrying out the examination may make copies of such documents for the purposes of any report relating to the examination; and Section 59(2)(c) the confidentiality of the information obtained in the course of the examination by the Commissioner or authorised officer shall be maintained and the information shall be used sol...

Section 60. Power of search and seize Section 60(1) The Commissioner or an authorised officer shall, with a warrant, have full and free access to any building, place, property, documents, or data storage device for the purposes of administering a tax law . Section 60(2) The Commissioner or an authorised officer may secure the building, place, property, documents, or data storage device to which access is sought under subsection (1) before obtaining a warrant. Section 60(3)(a) make an extract or copy of any documents or information stored on a data storage device to which access is obtained under subsection (1) ; Section 60(3)(b) seize any documents that, in the opinion of the Commissioner or authorised officer , may be material in determining the tax liability of a taxpayer and retain such documents for the period specified in subsection (9) ; Section 60(3)(c) seize and retain a data storage device when a physical copy or electronic copy of information stored on the device has not been provided for in the period specified in subsection (9) ; Section 60(3)(d) require the owner or lawful occupier (including an employee) of a building or place to which access is obtained under subsect...

Section 61. Notice to appear before theCommissioner Section Where the Commissioner is satisfied that a person has committed an offense under a tax law , the Commissioner may, by notice in writing, require the person to appear before him.

Section 59A. Data management and reporting system Section 59A(1) The Commissioner may establish a data management and reporting system for the submission of electronic documents including detailed transactional data relating to those documents. Section 59A(2) The Commissioner shall notify in writing the persons required to submit electronic documents through the system established under subsection (1) . Section 59A(3)(a) of payments made by a person in the ordinary course of business where goods were exchanged for consideration by a person not employed in the business; Section 59A(3)(b) for payments made by a person in the ordinary course of business where services were rendered, or in anticipation of services to be rendered, by a person not employed in the business; Section 59A(3)(c) for payments for services rendered, or in anticipation of services to be rendered, in connection with the formation, acquisition, development, or disposal of a business or a part of it, by persons not employed in the business; Section 59A(3)(d) for periodical or lump sum payments in respect of a royalty; or Section 59A(3)(e) for such other commercial or financial transaction as may be designated by th...

Section 24. Submission oftaxreturns Section 24(1) A person required to submit a tax return under a tax law shall submit the return in the approved form and in the manner prescribed by the Commissioner . Section 24(2) The Commissioner shall not be bound by a tax return or information provided by, or on behalf of, a taxpayer and the Commissioner may assess a taxpayer 's tax liability using any information available to the Commissioner .

Section 25. Extension of time to submittax return Section 25(1) A person required to submit a tax return under a tax law may apply in writing to the Commissioner for an extension of time to submit the return. Section 25(2)(a) fifteen days before the due date in the case of a monthly return; or Section 25(2)(b) thirty days before the due date in the case of an annual return. Section 25(3)(a) where no notification is received under this subsection, the application shall be deemed to have been granted; Section 25(3)(b) only one extension may be granted to an applicant in respect of a tax period. Section 25(4) The grant of an extension under this section shall not alter the date for payment of any tax due (referred to as the "original due date ") under the return as specified in the tax law under which the return has been made. Section 25(5) The provision of section 83 relating to penalties for late submission of returns shall not apply where an extension to submit a return has been granted under this section.

Section 26.Commissionermay requiretaxpayerto submit atax return Section 26(1)(a) bankruptcy, winding up or liquidation proceedings have been instituted against a taxpayer ; Section 26(1)(b) the Commissioner has reason to believe that a taxpayer is about to leave Kenya permanently; or Section 26(1)(c) a taxpayer has ceased, or the Commissioner has reason to believe that a taxpayer will cease, carrying on any business in Kenya; or Section 26(1)(d) a taxpayer has died. Section 26(2)(a) the taxpayer or the taxpayer 's tax representative to submit a tax return for the reporting period by the date specified in the notice being a date that may be before the date that the return for the reporting period would otherwise be due; and Section 26(2)(b) pay any tax due in relation to the return. Section 26(3) Where a taxpayer is subject to more than one tax , this section shall apply separately for each tax .

Section 27. Tax return duly submitted Section A tax return purported to have been submitted by or on behalf of a taxpayer by another person shall be treated as having been submitted by the taxpayer or with the taxpayer 's authority unless the contrary is proved.

Section 24A. Duty to submit third party returns Section A person shall, upon being required to do so by the Commissioner , furnish the Commissioner with returns showing such information, in such form and manner and within such time as the Commissioner may prescribe. ( Act No. 38 of 2016 , s. 37)

Section 28. Self-assessment Section 28(1) A taxpayer who has submitted a self-assessment return in the prescribed form for a reporting period shall be treated as having made an assessment of the amount of tax payable (including a nil amount) for the reporting period to which the return relates being the amount set out in the return. Section 28(2) If a taxpayer liable for income tax has submitted a self-assessment return in the prescribed form for a year of income and the taxpayer has a deficit for the year, the taxpayer shall be treated as having made an assessment of the amount of the deficit for the year being the amount set out in the return. Section 28(3) If a registered person has submitted a self-assessment return in the approved form for a tax period and the taxpayer 's total input tax for the period exceeds the taxpayer 's output tax for the period, the registered person shall be treated as having made an assessment of the amount of the excess input tax for the period being that amount set out in the return. Section 28(4)(a) the form containing pre-entered information provided by the Commissioner ; or Section 28(4)(b) the tax payable being computed electronically as informa...

Section 29. Defaultassessment Section 29(1)(a) the amount of the deficit in the case of a deficit carried forward under the Income Tax Act ( Cap. 470 ) for the period; Section 29(1)(b) the amount of the excess in the case of an excess of input tax carried forward under the Value Added Tax Act ( Cap. 476 ), for the period; or Section 29(1)(c) the tax (including a nil amount) payable by the taxpayer for the period in any other case. Section 29(2)(a) the amount assessed as tax or the amount of a deficit or excess of input tax carried forward, as the case may be; Section 29(2)(b) the amount assessed as late submission penalty and any late payment penalty payable in respect of the tax , deficit or excess input tax assessed; Section 29(2)(c) the amount of any late payment interest payable in respect of the tax assessed; Section 29(2)(d) the reporting period to which the assessment relates; Section 29(2)(e) the due date for payment of the tax , penalty , and interest being a date that is not less than 30 days from the date of service of the notice; and Section 29(2)(f) the manner of objecting to the assessment . Section 29(3) A written notification by the Commissioner of an assessment und...

Section 30. Advanceassessment Section 30(1) Subject to subsection (2) , the Commissioner may, based on the available information and to the best of his or her judgement, make an assessment (referred to as an " advance assessment ") of the tax payable by a taxpayer specified in section 26 for a reporting period. Section 30(2) The Commissioner shall make an advance assessment of a taxpayer if the taxpayer has not submitted a return for the reporting period . Section 30(3)(a) may be made before the date on which the taxpayer 's return for the period is due; and Section 30(3)(b) shall be made in accordance with the tax law in force at the date the assessment is made. Section 30(4)(a) the amount of tax assessed; Section 30(4)(b) the amount of any penalty payable in respect of the tax assessed; Section 30(4)(c) the reporting period to which the assessment relates; Section 30(4)(d) the due date for payment of the tax and penalty ; and Section 30(4)(e) the manner of objecting to the assessment . Section 30(5) An advance assessment may be amended under section 31 so that the taxpayer is assessed in respect of the whole of the reporting period to which the advance assessment relates. Section...

Section 31. Amendment of assessments Section 31(1)(a) in the case of a deficit carried forward under the Income Tax Act ( Cap. 470 ), the taxpayer is assessed in respect of the correct amount of the deficit carried forward for the reporting period; Section 31(1)(b) in the case of an excess amount of input tax under the Value Added Tax Act ( Cap. 476 ), the taxpayer is assessed in respect of the correct amount of the excess input tax carried forward for the reporting period ; or Section 31(1)(c) in any other case, the taxpayer is liable for the correct amount of tax payable in respect of the reporting period to which the original assessment relates. Section 31(2) A taxpayer who has made a self-assessment may apply to the Commissioner , within the period specified in subsection (4)(b)(i) , to make an amendment to the taxpayer 's self-assessment . Section 31(3) Where an amended self-assessment return has been submitted under subsection (2) , the Commissioner may accept or reject the amended self-assessment return and where he rejects, he shall furnish the taxpayer with the reasons for such rejection within thirty days of receiving the application. Section 31(4)(a) in the case of gross...

Section 32. Tax as a debt due to the State Section 32(1) A tax payable by a person under a tax law shall be a debt due to the Government and shall be payable to the Commissioner . Section 32(2) A taxpayer who is required to pay a tax electronically under a tax law or section 75 of this Act shall pay the tax electronically unless he or she is authorised in writing by the Commissioner to use another method of payment.

Section 33. Extension of time to paytax Section 33(1) A taxpayer may apply in writing to the Commissioner for an extension of time to pay a tax due under a tax law . Section 33(2)(a) grant the taxpayer an extension of time for payment of the tax ; or Section 33(2)(b) require the taxpayer to pay the tax in such instalments as the Commissioner may determine. Section 33(3) The Commissioner shall notify the taxpayer in writing of the decision regarding the application for extension of time, within thirty days of receiving the application for extension of time. Section 33(4) Where a taxpayer who has been permitted to pay a tax by instalments under subsection (2) defaults in the payment of an instalment, the whole balance of the tax outstanding at the time of default shall become immediately payable. Section 33(5) Despite being granted an extension of time to pay a tax or permission to pay a tax due by instalments by the Commissioner , a taxpayer shall be liable for any late payment interest arising from the original date the tax was due for payment. ( Act No. 38 of 2016 , s. 38.)

Section 34. Priority oftax Section 34(1)(a) the value added tax payable on taxable supplies made by the person (net of any deduction for input tax allowed) when the person is a registered person under the Value Added Tax Act ( Cap. 476 ); Section 34(1)(b) the excise duty payable on the removal of excisable goods from the person 's factory or the supply of excisable services by the person when the person is a licensed person under the Excise Duty Act ( Cap. 472 ); Section 34(1)(c) withholding tax ; and Section 34(1)(d) an amount that a payer is required to pay under a notice issued under section 41(2) . Section 34(2) If the person referred to in subsection (1) is liquidated or is declared bankrupt, the amount referred to in subsection (1) shall not form part of the estate of the person in liquidation or bankruptcy and shall be paid to the Commissioner before any distribution of property is made. Section 34(3)(a) shall not be subject to attachment in respect of any debt or liability of that person ; Section 34(3)(b) shall be a first charge on the payment or amount from which the tax is withheld or deducted; and Section 34(3)(c) shall be deducted prior to any other deduction that the...

Section 35. Order of payment Section 35(1)(a) firstly in payment of the tax liability; Section 35(1)(b) secondly in payment of penalty ; and Section 35(1)(c) finally the balance remaining shall be applied against any late payment interest . Section 35(2) When a taxpayer faces more than one tax liability at the time a payment is made, the payment shall be applied against the tax liabilities in the order in which the tax liabilities arose. Section 35(3) Where the interest payable under this section accrues, the aggregate interest payable shall not exceed the principal tax liability.

Section 36. Security for payment oftax Section The Commissioner may, for the purposes of securing the payment of any tax due or which shall become due, require a person to furnish a security in such manner and in such amount as the Commissioner may prescribe.

Section 37.[Repealed byAct No. 4 of 2023, s. 55]

Section 38. Late payment interest Section 38(1) Subject to subsection (2) , a person who fails to pay a tax on or before the due date for the payment of the tax shall be liable for late payment interest at a rate equal to one per cent per month or part of a month on the amount unpaid for the period commencing on the date the tax was due and ending on the date the tax is paid. Section 38(2) If it is found that the principal amount or part of the principal amount was not payable, the late payment interest paid by a person under subsection (1) shall be refunded to that person to the extent that the principal amount to which the interest relates is found not to have been payable. Section 38(3) The late payment interest payable under this section shall be computed as simple interest. Section 38(4) The late payment interest payable under this section shall be in addition to any late payment penalty or sanction imposed under Part XII in respect of the same act or omission. Section 38(5) The late payment interest shall be payable to the Commissioner and shall be treated as a tax payable by the person liable for the interest. Section 38(6) Where the Commissioner notifies a person of the per...

Section 39. Recovery ofunpaid taxby suit Section 39(1) Despite any other written law for the time being in force, the Commissioner may recover an unpaid tax as a civil debt due to the Government and, where the amount of unpaid tax does not exceed one hundred thousand shillings, the debt shall be recoverable summarily. Section 39(2)(a) the name and address of the person who is the defendant in the suit; and Section 39(2)(b) the amount of tax and late payment interest (if any) due by the person ,

Section 40. Security on property forunpaid tax Section 40(1) Where a taxpayer , being the owner of property in Kenya, fails to pay a tax by the due date , the Commissioner may notify the Registrar in writing that the property, to the extent of the taxpayer ’s interest in the property, shall be the subject of a security for the unpaid tax specified in the notification: Provided that the Commissioner shall, within seven days from the date of the notification to the Registrar, by notice in writing inform the taxpayer and any other person who may have an interest in the property about the notification. Section 40(2) Where the Registrar has been notified by the Commissioner under subsection (1) , the Registrar shall, without levying or charging a fee or stamp duty, register the Commissioner 's notification as if it were an instrument of of restraint on the disposal, mortgage on, or charge, as the case may be, the property specified in the notification. Section 40(3) A registration under subsection (2) shall, subject to any prior restraint on disposal, mortgage or charge, operate as a legal restraint on the disposal, mortgage, or charge on, the property to secure the amount of the unpaid...